Tradewise Report

on . Posted in Investment general

The Nikkei share average edged up slightly on Tuesday to extended its recovery from a two-month low, with investors buying into the shares of steelmakers and shipping companies but remaining wary as the conflicts in Ukraine and the Middle East could stifle world economic growth.

The Hang Seng Index underperformed regional markets with some profit-taking on Chinese financials, while the shares on mainland China also traded lower on Tuesday after yesterday’s strong gains, with investors cautious ahead of more July data which will provide more direction on how well the Chinese economy was recovering.

According to Reuters, European markets are expected to open slightly lower on Tuesday, having reversed a sharp two-week decline on Monday on the back of easing tensions between Ukraine and Russia.

Reuters reports that U.S. markets edged higher on Monday with eight of the S&P's 10 primary sector indices extending the rally from Friday, as investors became more positive about the geopolitical situation between Russia and Ukraine after Russia decided to send humanitarian aid to Ukraine.

Business Day reports that the JSE All Share Index closed higher on Monday on the back of strong gains on global equity markets as the spotlight switched from traditional safe-havens such as gold and US treasury bonds as jitters slowly subsided over conflict between Russia and Ukraine, while the situation in the Middle East also abated.

The Rand weakened slightly against the U.S. Dollar yesterday and was last trading at R10.6580 against the US Dollar, with the Euro quoted firmer at R14.2480 and the British Pound at R17.8279.

The gold price traded in a narrow range above the $1,300 an ounce level in Singapore on Tuesday as equity markets climbed higher, with easing geopolitical worries concerning Ukraine taking the spotlight off the safe-haven asset. Gold was last trading at $1,307.27, with the platinum price quoted at $1,462.45, while the palladium price has jumped to the $869.60 level.

Brent was last trading lower at $104.40 a barrel.